What is a key issue often associated with Net Listings?

Study for the Arizona Salesperson Test with flashcards and multiple-choice questions. Each question is paired with helpful hints and detailed explanations. Get ready to ace your exam!

Net listings present a unique arrangement where the seller specifies an amount of money they wish to receive from the sale of their property, while any amount above that becomes the commission for the broker. This setup can create a conflict of interest because the broker has an incentive to sell the property for the highest possible price, which might not always align with the seller's best interests. If the broker stands to gain more commission, they may exert pressure to accept a higher offer without adequately advising the seller on the nuances of the market or the terms of acceptance.

This potential for conflicting motivations highlights the importance of ethics and fiduciary duties in real estate practice, emphasizing that the broker should prioritize the seller's interests even in arrangements that allow for significant commission discrepancies.

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